What is Secondary Trading
Secondary Trading enables existing shareholders to buy and sell shares among themselves on a regulated marketplace. Unlike Direct Investment — where shares come from the company — here, existing investors sell their shares directly to other buyers. The company is not issuing new shares.
How Does It Work?
Section titled “How Does It Work?”Existing shareholders place sell orders, which other investors can match against. Once a match is made, the company reviews and approves the trade, and settlement happens automatically.
Who Sets the Price?
Section titled “Who Sets the Price?”The price is determined by an agreement between the buyer and seller. The company cannot set it — the market does, naturally.
What Control Does the Company Keep?
Section titled “What Control Does the Company Keep?”Issuers can control the order book by rejecting unwanted offers or users, and Secondary Trading can be enabled or disabled at any time through the Issuer Portal.
Secondary Trading vs. Direct Investment
Section titled “Secondary Trading vs. Direct Investment”| Direct Investment | Secondary Trading | |
|---|---|---|
| Who sells? | The company | Existing shareholders |
| Who sets the price? | The company | Buyer & seller agree |
| Purpose | Raise new capital | Give shareholders liquidity |